Modern Economics

If we come to the study of modern economics, we must start with a cautious attitude. Because not all modern economics the same. You may be argued that, based on the logic of economic development, all modern states would lead to similar forms of economic organization. But if you look at the whole world right now, you can clearly see the two forms.

In one form that includes the United States. Western Europe, Japan Canada and Australia (the so-called "free world" by some people and the "capitalist world" by the other) production is mainly controlled by private parties or companies that act in accordance with their own interests. We call it economic "free enterprise" or a capitalist or market.

In other countries such as Russia, China and its allies, almost the entire production was under government control. The government itself decides what the manufactured and how it is produced. We call it a planned economy or guided. Of course there is considerable overlap between these two forms. Even the socialist countries also show some characteristics of private enterprises, especially in deciding how the revenue should be distributed. And in most western countries the government now plays a major role so that their economies are often called semi-planned economy (semi planned economics)

Growing economy in this way is a matter of historical development of economic interest. In medieval times, the production lot is under the control of the barons and the local landlords so that there arose a large number of local command economy into small pieces. Early modern era witnessed the emergence of the states under the rule of kings. Kings are usually trying to apply strict controls on the activities of economic to confirm the element of "command".

However, trade is also increasing because traders ventured into other countries and listening to that wealth can be acquired through the exchange of commodities. Such people are not inclined to intervene like the kings or the government of their activities. Because the strength of his family, they often can impose concessions according to their will. Then in the second half of the eighteenth century, came the Industrial Revolution that began in England. Creation and discovery in the field of agriculture, industry, transportation, and science opens up new horizons for the wonderful people who took the initiative included in the economic problems. Prosperity is in front of the eye to be processed. That an obstacle is the limitation of arbitrary government.

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